93-09: Title Insurance Rates

To:           Title Insurance Companies

From:      Jay Angoff, Director

Re:          Title Insurance Rates

Date:       August 2, 1993

It has come to the attention of the Missouri Department of Insurance that title underwriters are under the impression their premium schedule filing establishes a minimum risk rate charge. As a result, title underwriters have been placing provisions in their contracts with their agents and agencies which authorize use of the National Risk Rate.

Section 381.181, RSMo and Regulation 20 CSR 500-7.100(2) require underwriters to file a premium schedule and use the risk rates established in the filed premium schedule. As such, these premium schedules do not establish a minimum risk rate. Any title underwriter using or authorizing the use of risk rates other than those in their filed premium schedule will be in violation of the above mentioned statute and regulation and subject to appropriate departmental disciplinary action.

Any questions regarding this bulletin should be addressed to the Property & Casualty section at (314) 751-3365.